Presentation is loading. Please wait.

Presentation is loading. Please wait.

Factors affecting industrial location

Similar presentations


Presentation on theme: "Factors affecting industrial location"— Presentation transcript:

1 Factors affecting industrial location
Geography Manufacturing Factors affecting industrial location

2 Systems model Because industry nearly always involves the making or creation of something, it is often looked at as a system. The three main parts of the system are: Inputs: The things that are needed to make or create a product. These maybe physical or human e.g. labour (workers), money or raw materials. Processes: The events or activities that take place to make a product e.g. watering crops or assembling a car. Outputs: The finished product that is sold to a consumer e.g. milk, a television or a car.

3 Location of Industry Weight Gain Industry: An industry that makes products which get heavier in the manufacturing process. A good example are cars. All the individual parts that go to make a car (tyres, windscreens, mirrors, etc.) don't weigh very much, but the finished product does way a lot. Because of this weight gain industries tend to locate near the market place (their customers). Weight Loss Industry: An industry that loses weight in the manufacturing process. A good example is steel which uses huge amounts of iron ore and coke to make it. In the process of making the steel there is a lot of waste products making the finished product lighter. Because of this weight loss industries tend to locate near to the raw material they need because transporting the finished product is cheaper.

4 Footloose Industries:
Normally tertiary and quaternary industries that are not tied to raw materials and therefore don't have such strict location requirements. Because of this they might look for more human factors like skilled labour, good housing and recreational facilities or access to capital. Example ICT on M4 corridor.

5 Factors affecting location

6 Physical factors affecting location
Flat Land: It is a lot easier to build on flat land than hilly land so most industries look for flat sites. Available Land: If industries are successful they will want to expand, so most industries will look for sites that have the potential to expand factories/offices. Unpolluted Land (Greenfield Site): Most industries would prefer to build on greenfield sites. This is because there are no clean up costs before building. Natural Transport Links: In an increasingly globalised world, products are now sold worldwide. Therefore it is important to be close to natural transport routes e.g. rivers and the coast. Available Raw Materials: For any industries that use raw materials (especially weight loss industries), it is very important to be close to them.

7 Physical factors affecting location
Renewable Energy Sources: It is becoming increasingly important for companies to demonstrate their sustainability. Therefore it will become increasingly important to have access to renewable energy sources (wind and sun). Nice Environment: For tertiary and quaternary industries who are trying to attract skilled workers it is useful to be near a nice environment to make working their more attractive. Water Supply: For many industries, especially manufacturing, it is very important to be near a reliable water supply (river or reservoir). Climate: For some industries a good climate can be very important. For example you would not locate a solar panel research and development company in a place where the sun never shines.

8 Human factors affecting location
Skilled Labour: In some industries especially quaternary it is important that there is an availability of skilled labour. Cheap Labour: In other industries like clothes production an availability of cheap labour is very important. This why many clothes factories locate in LEDCs. Available Capital: For industries to build factories or offices, research and develop new products or enter new markets, they need access to money. Market: For any industry to survive, they need customers. Therefore it is very important to locate near their potential market. Supply Network: Most industries have a large supply network. To ensure the smooth production of products it helps being close to suppliers. Good Housing: To attract any workers it is important to have suitable housing nearby. For quaternary industries this might be good quality housing for secondary industries this might be high density cheaper housing.

9 Human factors affecting location
Good Schools and Hospitals: Again to attract workers and especially their families, it is important to have good nearby schools and hospitals. Nearby Universities: For quaternary industries that carry out a lot research and development they need to be located near universities that have skilled workers and available laboratories. Transport Links: It is important to be close to good roads and rail links so that industries can receive supplies and distribute products. Good Communications: It is now very important for industries to have good communications so that they can contact suppliers and customers. Reliable Electricity and Water Supply: For all industries a constant electricity supply is essential because industries can't afford breaks in production.

10 Toyota Burnaston plant

11 Toyota Burnaston plant
The Toyota factory is located in Burnaston, near Derby (Central England). Toyota is the world's largest producer of cars and opened the Burnaston factory in It employs over 2,500 people and has over 200 suppliers, the majority of which are from the UK. There are a number of human and physical factors why Toyota chose Derby.

12 Human factors Transport: It is located on the junction of the A50 and A38 roads. Both these main roads have connections with rest of the country (M1, M6, M42). The plant is also near to East Midlands International Airport and has rail links to all parts of the UK. Transport links are important to receive supplies and transport finished products (cars). Labour: Derby is a traditional manufacturing location (it already has Rolls Royce and Bombardier factories) so has a large supply of skilled workers. Universities: Burnaston is near Derby, Leicester and Nottingham universities all of whom can provide skilled graduates and research facilities.

13 Human factors Market: The UK has a population of 65 million and the EU has a population of over 500 million which is a huge potential market for Toyota to sell cars to. European Union: The UK is in the EU. By Toyota being located in the UK it can more easily export cars to the rest of the EU. Reliable Electricity: The UK has a national electricity grid which means everywhere in the country is connected to electricity. Therefore Burnaston has a reliable electricity supply, although the Toyota factory has recently installed some solar panels.

14 Human factors Good Communications: The UK now has very good broadband internet coverage and a comprehensive mobile and landline network. Post is also fast and reliable making local and international communications quick and efficient. School and Hospitals: Derby is home to a new modern hospital (Royal Derby) and there are number of good state schools and independent schools that workers can send there children to e.g. Derby Grammar and Denstone College. Political Incentives: The local government was very keen for Toyota to invest in the area and helped with recruitment of all the workers - they had a dedicated job centre. They also promised to complete the A50 road that runs past the Toyota factory. Recreation: Derby has a major football club (Derby County) and numerous recreation centres (e.g. David Lloyd Sports Centres), golf courses, cinemas and shopping centres (Westfield) so there is plenty for potential workers to enjoy.

15 Physical factors Flat Land: The site near Burnaston was very flat and easy to build on (see photograph). Room for Expansion:  The site also has a lot of room for expansion. In fact if you look at the photograph to the right you might notice the slightly different colour roofs, this is because it has already been expanded once.

16 Physical factors Flat Land: The site near Burnaston was very flat and easy to build on (see photograph). Greenfield Site: Large parts of the site at Burnaston had not been built on (farmland) so there were no clean up costs. Pleasant Environment: Burnaston is right on the edge of the Peak District National Park which means workers can live and relax in pleasant environments.


Download ppt "Factors affecting industrial location"

Similar presentations


Ads by Google